Fiscal Policy Stance in the Euro Area

Fiscal Policy Stance in the Euro Area

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The budgetary position in the euro area and the EU improved significantly in 2007 chicago cubs tumbler compared to the previous year.The headline deficit declined to 1.6 % of GDP in 2006 and 1.1 % of GDP in 2007, down from 2.5% of GDP in 2005.

The structural budget deficit diminished from 2% of GDP in 2005 to 0.8% in 2007, reflecting a restrictive fiscal policy in euro area.The fiscal policy became pro-cyclically because the economy of euro area royal fryer rft-50 is characterized by a slightly negative output-gap (estimated at 0.2% of potential GDP in 2007).